LabMD v. Federal Trade Commission

At the urging of Ropes & Gray, the U.S. Court of Appeals for the Eleventh Circuit today vacated the Federal Trade Commission’s order against LabMD, which arose from the first ever FTC adjudication that a company’s data security practices are “unfair” under the FTC Act.

The court ruled that the FTC’s order is unenforceable because, rather than enjoining a specific act or practice, it mandates a complete overhaul of LabMD’s data security program and says little about how this is to be accomplished, effectively charging a district court with managing the overhaul. The decision will have significant implications for data security regulatory enforcement and litigation.

The Ropes & Gray team representing LabMD includes privacy & cybersecurity co-head Douglas Meal (Picture), partners Douglas Hallward-Driemeier and Michelle Visser, and counsel David Cohen, and also received critical support from healthcare partner Debbie Gersh.

Involved fees earner: Douglas Meal – Ropes & Gray; Douglas Hallward-Driemeier – Ropes & Gray; Michelle Visser – Ropes & Gray; David Cohen – Ropes & Gray; Deborah Gersh – Ropes & Gray;

Law Firms: Ropes & Gray;

Clients: LabMD;